Indian transport minister Nitin Gadkari's warning to the auto industry asking them to hasten the switch-over to electric vehicles or face consequences has put the auto makers in a big challenge. The message brings along a massive challenge of how to move from nearly 99 per cent petrol or diesel engine capacity to pure battery-powered ones. India saw production of nearly 25 million vehicles in 2016-17, comprising of motorcycles, scooters, cars, SUVs, three-wheelers, and commercial vehicles.
Maruti Chairman RC Bhargava said, “I don't think all of a sudden millions of cars can be converted to electric. A customer has to get used to the idea of an electric car. It will be necessary to keep a close watch on the customer sentiments. We need a clearer roadmap. Then we can plan our future investments clearly.” Maruti currently has an engine capacity of nearly 15,00,000 per annum, and its parent Suzuki is now in the process of setting up a 5,00,000-capacity engine plant in Gujarat.
Director, Hyundai India, Rakesh Srivastava welcomed the government's intention, saying there would be challenges in the transition. “We welcome the direction towards electric vehicles, but it would also lead to certain challenges. There is a sizeable big investment that has been made for the engine plant. A platonic shift towards electric vehicles will bring in a new set of challenges towards utilisation of the current capacity of engines as well as investments towards electric,” he said. The company has an annual capacity of around 7,00,000 engines. Srivastava meant this runs the risk of becoming idle.
The Indian auto industry is already working to migrate to the stricter BS6 emission norms that kick in from 2020. The government said companies need to work on electric vehicles and technologies immediately so that there is no sudden pressure towards 2030, by when it expects the entire fleet to move-over to cleaner drivetrains.
